France’s SCOR Group announced a capital increase of €376.744 million ($482.53 million) in the form of a subscription rights offer primarily in order to finance the acquisition of Revios Rückversicherungs AG. Present shareholders would have the right to purchase two new shares for each nine existing shares at a price of €1.75 ($2.24) per new share.
The offer is highly restricted. Extensive warnings on the Group’s Website point to the fact that no registration(s) or sales are to be made outside France. Accordingly, this article is for information only. The severe restriction – a response to U.S. and other securities laws – has caused some non-French analysts to complain of non-disclosure.
SCOR said: “The planned acquisition of Revios amounts to approximately €675 million [$864.5 million], including the purchase of 100 percent of the shares of Revios for €605 million [$775 million], the refinancing of the subordinated debt contracted by Revios from GLOBALE, in the amount of €50 million [$64 million], and the payment of interim interest on the acquisition purchase price and the subordinated debt of Revios in the amount of approximately €20 million [$25.6 million].
“The proposed acquisition is being financed through the issuance by SCOR of undated deeply subordinated notes in the amount of €350 million [$448.3 million] on July 28, 2006 and by this capital increase.”
SCOR also announced that it has signed a protocol agreement for the “acquisition of ReMark Group B.V. shares held by Miklo Beheer B.V., for €22.5 million [$28.8 million] subject to the usual conditions, thereby increasing its shareholding in the capital of ReMark, which has stood at 10.2 percent since 1994. Following this transaction, SCOR will hold 39.7 percent of ReMark’s capital and 40.2 percent of the voting rights. By increasing its share in the capital of ReMark, SCOR is strengthening its partnership with a major player in the supply of Life reinsurance products. This partnership will also enable ReMark to evolve and to accompany the SCOR group in the development of its Life reinsurance business.”
Denis Kessler, Chairman and CEO of SCOR, commented: “This capital increase, which is primarily directed to the current shareholders of SCOR, allows the completion of the financing of the Revios acquisition which will strengthen the Group’s development in Life reinsurance throughout the world. SCOR is actively preparing the integration of Revios which should occur upon the closing of transaction, which is theoretically expected before the end of November.”
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